Finance leaders can be boring and still make excellent politicians
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In times of crisis, people often turn to number-crunchers. The election of Mark Carney as leader of Canada’s Liberal Party, and thus as the country’s next prime minister, proves as much.
Carney was the governor of the Bank of Canada during the 2008 financial crisis and in 2013 became the first non-citizen to lead the Bank of England. He was also a successful banker in the private sector, having served as chair and head of impact investing at Brookfield Asset Management and chair of the board at Bloomberg LP.
“Everything in my life has helped prepare me for this moment,” Carney told the crowd during his victory speech at the Liberal leadership convention in Ottawa on 9 March.
The former financier isn’t a member of the parliament – he has never even been elected to public office. And yet, he’ll be leading Canada’s government at a critical moment, as the country faces a looming trade war, a cost-of-living crisis, soaring housing costs and an overstretched health system. President Donald Trump’s tariffs on Canadian goods are already impacting both Canadian and US economies, and Trump’s suggestion that Canada become the 51st state of the US has riled the general public.
Carney, who has vowed retaliatory tariffs until “the Americans show us respect”, has emerged as a reasonable but firm statesman in troubled times. He has, after all, helped navigated not one but two major crises: the global financial crisis as head of the Bank of Canada and the aftermath of the Brexit vote as governor of the Bank of England.
With the world in an intensifying state of disarray, might we see more finance leaders launch their political careers?
Finance professionals can make excellent business leaders. Accountants, with their attention to detail and penchant for pragmatism, may progress to chief financial officers, for instance, where they can directly influence business strategy. And finance chiefs are often considered to be natural successors to the chief executive, offering dependable analysis and level-headed leadership through volatile economic conditions.
Whether business acumen translates to political efficacy, however, is another matter. In the past, former finance professionals have had less representation in government compared with professions such as lawyers and journalists.
This may be down, in part, to their reputation for being dour or awkward, possessing poor communication skills or lacking charisma. Indeed, most of the criticism levelled against Carney relates to his personality – that he’s “boring” or “not a people person”.
Such stereotypes are neither fair nor justified. And to write off all finance professionals as “dull” is to miss the point.
Most finance leaders are connectors of people and ideas, as much as facts and statistics. They are well-versed in the art of negotiation, and soft skills are even more central to their success than technical skills. The most engaging finance leaders learn by sharing stories of tough decisions, financial setbacks or innovative strategies that drive real change.
A glance at Carney’s résumé reveals a track-record of innovation. For instance, he led the UK’s transition to plastic bank notes – a major departure for a central bank that had used paper money for more than 300 years. He also introduced a market-communication strategy in the UK designed to provide a clearer indication of short-term interest rates.
Many seasoned financiers do well in leadership positions precisely because they are not over-the-top, brash or unpredictable. With so many people growing sick and tired of falling victim to the whims and fancies of egoistical politicians, Canary’s landslide victory is proof that most of us would rather be led by an economist than an entertainer.
In times of crisis, people often turn to number-crunchers. The election of Mark Carney as leader of Canada’s Liberal Party, and thus as the country’s next prime minister, proves as much.
Carney was the governor of the Bank of Canada during the 2008 financial crisis and in 2013 became the first non-citizen to lead the Bank of England. He was also a successful banker in the private sector, having served as chair and head of impact investing at Brookfield Asset Management and chair of the board at Bloomberg LP.
“Everything in my life has helped prepare me for this moment,” Carney told the crowd during his victory speech at the Liberal leadership convention in Ottawa on 9 March.
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